This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

12987 

Vol. 89, No. 35 

Wednesday, February 21, 2024 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1217 

[Doc. No. AMS–SC–22–0088] 

Softwood Lumber Research, 

Promotion, Consumer Education, and 

Information Order; Adjustment to 

Membership 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposal invites 

comments on the modification of the 

membership of the Softwood Lumber 

Board (Board) established under the 

Softwood Lumber Research, Promotion, 

Consumer Education and Industry 

Information Order (Order). This action 

would modify the membership of the 

Board by adding the alternate position 

for certain seats and a public member. 

In addition, Harmonized Tariff 

Schedule (HTS) numbers for softwood 

lumber would be updated with the 

latest numbers from the U.S. 

International Trade Commission. The 

Board administers the Order with 

oversight by the U.S. Department of 

Agriculture (USDA). 

DATES: Comments must be received by 

March 22, 2024. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rule. 

Comments may be mailed to the Docket 

Clerk, Market Development Division, 

Specialty Crops Program, AMS, USDA, 

1400 Independence Avenue SW, STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or submitted 

electronically by Email: 

MDDComments@usda.gov; or via 

internet at https://www.regulations.gov. 

Comments should reference the 

document number and the date and 

page number of this issue of the Federal 

Register. All comments will be made 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours or can be viewed at 

https://www.regulations.gov. Comments 

submitted in response to this proposed 

rule will be included in the rulemaking 

record and will be made available to the 

public. Please be advised that the 

identity of the individuals or entities 

submitting the comments will be made 

public. 

FOR FURTHER INFORMATION CONTACT: 

Katie Cook, Marketing Specialist, 

Market Development Division, Specialty 

Crops Program, Agricultural Marketing 

Service, U.S. Department of Agriculture, 

1400 Independence Avenue SW, Room 

1406–S, Stop 0244, Washington, DC 

20250–0244; Telephone: (202) 720– 

8085; or Email: Katie.Cook@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed rule affecting the Order (7 CFR 

part 1217) is authorized by the 

Commodity Promotion, Research, and 

Information Act of 1996 (Act) (7 U.S.C. 

7411–7425). 

Executive Orders 12866, 13563 and 

14094 

USDA’s Agricultural Marketing 

Service (AMS) is issuing this proposed 

rule in conformance with Executive 

Orders 12866, 13563, and 14094. 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

14094 reaffirms, supplements, and 

updates Executive Order 12866 and 

further directs agencies to solicit and 

consider input from a wide range of 

affected and interested parties through a 

variety of means. This proposed rule is 

not a significant regulatory action 

within the meaning of Executive Order 

12866. Accordingly, this action has not 

been reviewed by the Office of 

Management and Budget under section 

6 of the Executive Order. 

Executive Order 13175 

This action has been reviewed in 

accordance with the requirements of 

Executive Order 13175, Consultation 

and Coordination with Indian Tribal 

Governments. AMS has assessed the 

impact of this proposed rule on Indian 

Tribes and determined that this 

proposed rule would not have Tribal 

implications that require consultation 

under Executive Order 13175. AMS 

hosts a quarterly teleconference with 

Tribal leaders where matters of mutual 

interest regarding the marketing of 

agricultural products are discussed. 

Information about the proposed changes 

to the regulations will be shared during 

an upcoming quarterly call, and Tribal 

leaders will be informed about the 

proposed revisions to the regulation and 

the opportunity to submit comments. 

AMS will work with the USDA Office 

of Tribal Relations to ensure meaningful 

consultation is provided as needed with 

regard to these proposed changes to the 

Order. 

Executive Order 12988 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. It is not intended to 

have retroactive effect. Section 524 of 

the Act (7 U.S.C. 7423) provides that it 

shall not affect or preempt any other 

Federal or State law authorizing 

promotion or research relating to an 

agricultural commodity. 

Under sec. 519 of the Act (7 U.S.C. 

7418), a person subject to an order may 

file a written petition with USDA stating 

that an order, any provision of an order, 

or any obligation imposed in connection 

with an order, is not established in 

accordance with the law, and request a 

modification of an order or an 

exemption from an order. Any petition 

filed challenging an order, any 

provision of an order, or any obligation 

imposed in connection with an order, 

shall be filed within two years after the 

effective date of an order, provision, or 

obligation subject to challenge in the 

petition. The petitioner will have the 

opportunity for a hearing on the 

petition. Thereafter, USDA will issue a 

ruling on the petition. The Act provides 

that the district court of the United 

States for any district in which the 

petitioner resides or conducts business 

shall have the jurisdiction to review a 

final ruling on the petition if the 

petitioner files a complaint for that 

purpose not later than 20 days after the 

date of the entry of USDA’s final ruling. 


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12988 Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Proposed Rules 

Background 

Under the Order, which became 

effective on August 3, 2011, the Board 

administers a nationally coordinated 

program of research, development, 

advertising, and promotion designed to 

strengthen softwood lumber’s 

competitive position and expand 

domestic markets for softwood lumber. 

This program is financed by 

assessments on domestic manufacturers 

and importers of softwood lumber. The 

Board administers the Order with 

oversight by the USDA. 

This proposed rule would modify the 

membership of the Board by adding two 

domestic manufacturer alternates, one 

importer alternate, a public member and 

alternate, and updating HTS numbers. 

The Board discussed the 

recommendations over several months 

and on May 17, 2023, unanimously 

recommended the proposed changes to 

the membership and the update to the 

HTS numbers. Board members present 

for the vote represented domestic 

manufacturers and importers. 

Board Recommendation To Adjust 

Membership by Adding Certain 

Alternate Positions and a Public 

Member 

Section 1217.40 of the Order provides 

for the membership of the Board and 

authorizes these proposed changes. The 

Board is comprised of 10 domestic 

manufacturers and four importers who 

manufacture and domestically ship or 

import 15 million board feet or more of 

softwood lumber in the United States 

during a fiscal period. Currently the 

Board struggles to find individuals from 

under-represented populations who are 

eligible to serve with the current 

membership requirements. To mitigate 

this issue, this proposed rule would add 

alternate positions (two for domestic 

manufacturers; one for importers) and a 

public member (and an alternate public 

member) to the Board. 

Unlike most other research and 

promotion programs, the members on 

this Board have corporate backgrounds 

and serve in leadership positions at 

their respective companies. Individuals 

who usually serve on the Board are from 

large, international corporations. 

Furthermore, according to the Board, 

about 90% of the manufacturing 

companies are family owned, therefore 

these companies typically pass 

leadership positions on to a family 

member. It is common industry practice 

to nominate executive-level employees 

to serve on the Board, so they are among 

their counterparts, which allows for 

robust discussions and thoughtful 

decision making, all with the goal of 

increasing demand for softwood lumber 

in the U.S. The Board has stated that 

adding alternates for manufacturers 

would provide a developmental 

opportunity for junior-level 

stakeholders and expand the pool of 

members. 

Adding a public member and 

alternate would expand the pool of 

members and would allow the Board to 

tap into broader backgrounds and more 

diverse perspectives. Ideally, the public 

member position would be filled by an 

individual in architecture, construction, 

engineering, or development sectors, 

who would participate, voice their 

opinions and vote to the benefit of their 

industry in relation to the softwood 

lumber market. Much like the alternates 

for manufacturers, adding an alternate 

public member would give junior-level 

professionals in the architecture, 

construction, and engineering industries 

an opportunity to provide input and 

unique perspective on Board actions. 

This proposed rule would be the 

second change to the Board’s 

membership since its inception. In 

response to industry consolidation in 

2019, the membership was reduced 

from 19 to 14 and more flexibility was 

added to the Order in terms of certain 

seats being open to representatives of 

any size manufacturer or importer. 

While previous rulemaking sought to 

decrease membership, this proposed 

rule would add certain alternate 

positions and a public member to help 

create opportunities for a more diverse 

and inclusive Board. The Board does 

not believe they will have difficulty 

filling the new positions from this 

proposed rule because the new 

positions would target junior level 

stakeholders. Industry consolidation 

remains a concern, but the proposed 

rule would open eligibility to a new 

class of underrepresented industry 

members. 

In addition to providing more 

opportunities to recruit diverse 

candidates, adding alternates would 

help the Board meet quorum 

requirements, which became a greater 

issue after the Board reduced its 

membership in 2019. Including 

alternates would allow for an absent 

member seat or vacant seat to be filled 

as needed to vote on Board motions. 

Since alternates would not be broken 

out by size, they would serve in the 

stead of any size seat if it is from the 

same region they represent for the two 

domestic seats, and any importing 

region for the importer seat. 

With the proposed changes to 

§ 1217.40, the membership of the Board 

would increase from 14 to 15 members 

and four alternates. The proposed Board 

would be composed of 10 domestic 

manufacturer members and two 

alternates, four importer members and 

one alternate, and one public member 

and one alternate. Further, domestic 

manufacturers would represent three 

regions with five members and one 

alternate representing the South region; 

four members and one alternate 

representing the West region; and one 

member representing the Northeast and 

Lake States region. Alternates for the 

domestic manufacturers may represent 

companies of any size. For importer 

representation, the four members would 

be two large, one small, and one of any 

size, while the alternate may represent 

importers of any size from any region. 

As a point of clarification, current 

§ 1217.41(f) of the Order states no two 

members shall be employed by a single 

corporation, company, partnership, or 

any other legal entity. The intention of 

the proposed changes to the 

membership of the Board is to maintain 

this stipulation for alternates, ensuring 

the Order is not violated in the event a 

member permanently ceases to serve 

and needs an alternate to step in. Board 

members and industry representatives 

are encouraged to identify and nominate 

junior-level professionals from 

manufacturers and importers not 

represented on the Board at the time. 

Although there is consolidation in the 

industry, there are a sufficient number 

of companies who would be able to fill 

the 15 member seats and four alternate 

seats. 

Section 1217.44, which is currently 

‘‘Procedure’’, would be revised to be 

titled ‘‘Alternates’’; it would create the 

alternate position and explain the role 

of alternate members on the Board. In 

the event a member is unable to attend 

a Board meeting due to death, removal, 

resignation, disqualification, illness, or 

any other reason, the alternate from the 

same group (domestic manufacturer, 

importer, or public member) and region 

(if applicable) may serve in the 

member’s stead. For example, if a 

member is unable to attend a singular 

meeting, an alternate from the same 

category could step in and serve as a 

member, counting towards quorum and 

would be eligible to vote. On the other 

hand, if a member is unable to serve 

permanently, an alternate from the same 

category would succeed as the next 

member, vacating an alternate position. 

Currently, § 1217.44 specifies the 

Board’s procedures, § 1217.45 specifies 

the reimbursement and attendance 

policies when performing Board 

business, § 1217.46 specifies the powers 

and duties of the Board, and § 1217.47 

specifies prohibited activities. Current 

§§ 1217.44 to 1217.47 would be 


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1SBA does have a small business size standard 

for ‘‘Sawmills’’ of 550 employees (see https://

www.sba.gov/sites/sbagov/files/2023-06/Table%20

of%20Size%20Standards_Effective%20

March%2017%2C%202023%20%282%29.pdf). 

Based on AMS’s understanding of the lumber 

industry, using this criterion would be impractical 

as sawmills often use contractors rather than 

employees to operate and, therefore, many mills 

would fall under this criterion while being, in 

reality, a large business. Therefore, AMS used the 

definition of a small firm which engages in 

‘‘Support Activities for Forestry’’ as a more 

appropriate criterion for this analysis. 

redesignated and become §§ 1217.45 to 

1217.48 to accommodate the addition of 

the role of the newly created alternate 

member positions in § 1217.44. 

Redesignated §§ 1217.45 to 1217.47 

would also be revised to include 

references to alternates. 

Conforming Changes 

Section 1217.5 defines conflict of 

interest for current Board members or 

Board employees. This section would be 

revised to include alternate members to 

the Board and is a conforming change. 

Section 1217.41 specifies the 

nomination procedures. This proposed 

rule would revise § 1217.41(b) and (c) 

and redesignated § 1217.41(g) to include 

alternate members and the public 

member. Section 1217.41(b) would 

specify that domestic manufacturers, 

importers, and public members and 

alternates may submit a short 

background statement outlining their 

qualifications to serve on the Board. 

Section 1217.41(c) would state that all 

members and alternates may seek 

nomination for all open or vacant seats 

for which they are eligible. Section 

1217.41(e) would be added to prescribe 

nomination procedures specifically for 

the public member and alternate 

positions on the Board. 

The nomination procedure provides 

that the Board conduct outreach and 

solicit nominees for domestic 

manufacturers, importers, and public 

members who are interested in serving 

on the Board. A nominee could seek 

nomination to the Board for all seats for 

which they qualify. The Board would 

evaluate all nominees and submit one 

recommended candidate for each open 

seat and at least one additional nominee 

for each open seat to the Secretary for 

consideration. Any additional qualified 

persons interested in serving in any of 

the open seats but not one of the two 

forwarded by the Board would be 

designated as additional nominees for 

consideration by the Secretary. 

Current § 1217.41(f), which states that 

no two members shall be employed by 

a single legal entity, would be 

redesignated and revised to include 

alternates. 

Section 1217.42 specifies the term of 

office. Section 1217.42(a) would be 

revised to include alternates and to 

allow members to serve as an alternate 

when they are ineligible to serve in the 

member position after two consecutive 

terms. In addition, § 1217.42(b) would 

stagger the alternate member position 

terms so that not all the alternates 

would term off the Board at the same 

time. Like their member counterparts, 

alternate members would be able to 

serve two consecutive, 3-year terms as 

alternates. If an alternate is nominated 

and appointed as a member, the 

eligibility starts over. For example, if an 

alternate member serves two 

consecutive terms, they would be 

eligible to serve as a member 

immediately after their service as an 

alternate. 

Section 1217.43 specifies the removal 

and filling of vacancies on the Board. 

Section 1217.43(a) would be revised to 

address the addition of alternates to the 

Board, and state that if any member or 

alternate ceases to serve in their 

appointed capacity, whether they leave 

their position at their manufacturing or 

importing entity, or if they no longer 

qualify as a Board member or alternate 

in the respective group or region in 

which they were appointed, that 

position would become vacant. As 

discussed above, if a member seat were 

to be vacated, the alternate in the same 

group and region (if applicable) would 

fill that member seat, leaving that 

alternate position vacant. Section 

1217.43(b) would be revised to add 

alternates, specifying that, similar to 

members, if an alternate refuses to 

perform their duties, the Secretary may 

remove the member or alternate from 

the Board. Section 1217.43(c) would be 

revised to use alternate members to fill 

member vacancies until the end of the 

member’s normal term. 

Board Recommendation To Update 

HTS Numbers 

Section 1217.52(h) specifies the HTS 

numbers and assessment rates on 

imported softwood lumber. This 

proposed rule would update HTS 

numbers to the latest codes published 

by the U.S. International Trade 

Commission. 

Initial Regulatory Flexibility Act 

Analysis 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), AMS is required to examine the 

impact of the action on small entities. 

Accordingly, AMS has considered the 

economic impact of this action on such 

entities. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to the actions so that 

small businesses will not be 

disproportionately burdened. The Small 

Business Administration (SBA) defines, 

in 13 CFR part 121, small firms which 

engage in ‘‘Support Activities for 

Forestry’’ (domestic softwood lumber 

manufacturers and importers) as those 

having annual receipts of no more than 

$11.5 million.1

The RISI/Fast Markets Random 

Lengths Publication’s yearly average 

framing lumber composite price was 

$759 per thousand board feet (mbf) in 

2022. Dividing the $11.5 million 

threshold that defines a small firm 

which provides ‘‘Support Activities for 

Forestry’’ by this price results in a 

maximum threshold of 15.15 million 

board feet (mmbf) of softwood lumber 

per year that a domestic manufacturer or 

importer may ship to be considered a 

small entity for purposes of the RFA. 

Table 1 shows the number of entities 

and the amount of volume they 

represent that may be categorized as 

small or large based on the SBA 

definition. This table is based on data 

from Forest Economic Advisors (FEA) 

and Customs and Border Protection 

(CBP). 

TABLE 1—DOMESTIC MANUFACTURERS AND IMPORTERS BY SBA SIZE STANDARDS, 2022 

Domestic manufacturers Importers Totals 

Entities Volume 

(MMBF) Entities Volume (MMBF) Entities Volume (MMBF) 

Small ........................................................ 150 960 753 1,034 903 1,984 

Large ........................................................ 174 36,616 110 14,904 284 51,520 


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TABLE 1—DOMESTIC MANUFACTURERS AND IMPORTERS BY SBA SIZE STANDARDS, 2022—Continued 

Domestic manufacturers Importers Totals 

Entities Volume 

(MMBF) Entities Volume (MMBF) Entities Volume (MMBF) 

Total .................................................. 324 37,566 863 15,938 1,187 53,504 

Sources: Forest Economic Advisors; Customs and Border Protection. 

Table 1 shows that there was a 

combined total of 1,187 domestic 

manufacturers and importers of 

softwood lumber in the industry in 

2022. Of these, 903 entities, or 76 

percent, shipped or imported less than 

15.15 mmbf and would be considered 

small based on the SBA definition. 

These 903 entities domestically 

manufactured or imported 1.984 billion 

board feet (bbf) in 2022, less than 4 

percent of total volume. The proposed 

rule would not disproportionately 

burden small domestic manufacturers 

and importers of softwood lumber. 

This proposal would revise § 1217.44 

to add the alternate position, revise 

§ 1217.40 to specifically add four 

alternates and a public member on the 

Board and make conforming changes 

throughout the Order. The Order is 

administered by the Board with 

oversight by the USDA. In accordance 

with the program requirements, 

assessments are collected from domestic 

manufacturers and importers, and used 

for research and promotion projects 

designed to strengthen the position of 

softwood lumber in the marketplace. 

Revising the Order to add two domestic 

manufacturer alternates, one importer 

alternate, and one public member and 

one public member alternate positions 

would provide more opportunities for 

diverse candidates to serve on the 

Board. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the information collection 

and recordkeeping requirements that are 

imposed by the Order have been 

approved previously under OMB 

control number 0581–0093. This 

proposed rule would not result in a 

change to the information collection and 

recordkeeping requirements previously 

approved and would impose no 

additional reporting and recordkeeping 

burden on domestic manufacturers and 

importers of softwood lumber. 

As with all Federal promotion 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. AMS has not identified 

any relevant Federal rules that 

duplicate, overlap, or conflict with this 

proposed rule. 

Regarding alternatives, the Board 

considered not changing the current 

Board makeup and continuing to have 

issues with meeting quorum and diverse 

members serving on the Board. The 

Board decided against this option to 

avoid meeting delays and continued 

concerns with nominations. Therefore, 

the alternatives were rejected. 

Regarding outreach efforts, the full 

Board determined making this proposed 

change would give further opportunity 

for industry to engage with the Board 

and expand the availability of positions 

to those from under-represented 

communities and populations. This 

proposal was discussed by the Industry 

Relations and Governance Committee 

on June 29, 2022, and the full Board 

unanimously recommended rulemaking 

on August 11, 2022. Further discussions 

among the full Board took place on May 

17, 2023. AMS has performed this 

initial RFA analysis regarding the 

impact of this action on small entities 

and invites comments concerning 

potential effects of this action. 

While this proposed rule as set forth 

below has not yet received the approval 

of AMS, it has been determined that it 

is consistent with and would effectuate 

the purposes of the Act. A 30-day 

comment period is provided to allow 

interested persons to respond to this 

proposal. All written comments 

received in response to this proposed 

rule by the date specified will be 

considered prior to finalizing this 

action. 

List of Subjects in 7 CFR Part 1217 

Administrative practice and 

procedure, Advertising, Agricultural 

research, Confidential business 

information, Consumer protection, 

Forest and forest products, Inventions 

and patents, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service proposes to amend 7 CFR part 

1217 as follows: 

PART 1217—SOFTWOOD LUMBER 

RESEARCH, PROMOTION, 

CONSUMER EDUCATION AND 

INDUSTRY INFORMATION ORDER 

■ 1. The authority citation for 7 CFR 

part 1217 continues to read as follows: 

Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 

7401. 

■ 2. Revise § 1217.5 to read as follows: 

§ 1217.5 Conflict of interest. 

Conflict of interest means a situation 

in which a member, alternate, or 

employee of the Board has a direct or 

indirect financial interest in a person 

who performs a service for, or enters 

into a contract with, the Board for 

anything of economic value. 

■ 3. In § 1217.40, revise paragraphs (a) 

and (b) to read as follows: 

§ 1217.40 Establishment and membership. 

(a) Establishment of the Board. There 

is hereby established a Softwood 

Lumber Board to administer the terms 

and provisions of the Order and 

promote the use of softwood lumber. 

The Board shall be composed of 

manufacturers for the U.S. market who 

manufacture and domestically ship or 

import 15 million board feet or more of 

softwood lumber in the United States 

during a fiscal period. Seats on the 

Board shall be apportioned based on the 

volume of softwood lumber production 

that is manufactured and shipped 

within the United States by domestic 

manufacturers and the volume of 

softwood lumber imported into the 

United States. Seats on the Board shall 

also be apportioned based on size of 

operation within each geographic 

region, as specified in paragraphs (b)(l) 

and (2) of this section. For purposes of 

this section, ‘‘large’’ means 

manufacturers for the U.S. market who 

account for the top two-thirds of the 

total annual volume of assessable 

softwood lumber and ‘‘small’’ means 

those who account for the remaining 

one-third of the total annual volume of 

assessable softwood lumber. If there are 

no eligible nominees for a large or small 

seat within a region, that seat may be 

filled by a nominee representing an 

eligible manufacturer for the U.S. 

market of any size. Should the size of 


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a manufacturer for the U.S. market 

change during a member’s or alternate’s 

term of office, that member or alternate 

may serve for the remainder of the term. 

(b) Composition of the Board. The 

Board shall be composed of 15 members 

and four alternates, as follows: 

(1) Domestic manufacturers. Domestic 

manufacturers must reside in the United 

Stated. Ten members and two alternates 

shall represent domestic manufacturers 

who reside in the following three 

regions: 

(i) Five members and one alternate 

shall represent manufacturers of 

softwood lumber in the U.S. South 

Region, which consists of the states of 

Alabama, Arkansas, Florida, Georgia, 

Louisiana, Mississippi, North Carolina, 

Oklahoma, South Carolina, Tennessee, 

Texas, Virginia, and West Virginia. Of 

these five members, two members must 

represent large, two members must 

represent small, and one member may 

represent domestic manufacturers of 

any size. The region’s alternate may 

represent domestic manufacturers of 

any size; 

(ii) Four members and one alternate 

shall represent manufacturers of 

softwood lumber in the U.S. West 

Region, which consists of the states of 

Alaska, Arizona, California, Colorado, 

Hawaii, Idaho, Montana, Nevada, New 

Mexico, North Dakota, Oregon, South 

Dakota, Utah, Washington, and 

Wyoming. Of these four members, two 

members must represent large, one 

member must represent small, and one 

member may represent domestic 

manufacturers of any size. The region’s 

alternate may represent domestic 

manufacturers of any size; and 

(iii) One member shall represent 

manufacturers of softwood lumber in 

the Northeast and Lake States Region, 

which consists of the states of 

Connecticut, Delaware, Illinois, Indiana, 

Iowa, Kansas, Kentucky, Maine, 

Maryland, Massachusetts, Michigan, 

Minnesota, Missouri, Nebraska, New 

Hampshire, New Jersey, New York, 

Ohio, Pennsylvania, Rhode Island, 

Vermont, Wisconsin and all other parts 

of the United States not listed in 

paragraph (b)(1)(i), (ii), or (iii) of this 

section. This member may represent 

domestic manufacturers of any size. 

(2) Importers. Four members and one 

alternate shall represent importers. Of 

these four members, two members must 

represent large, one member must 

represent small, and one member may 

represent importers of any size. The 

alternate may represent importers of any 

size from any region. At least three of 

the members must import softwood 

lumber from the following regions: 

(i) Two members must import 

softwood lumber from the Canadian 

West Region, which consists of the 

provinces of British Columbia and 

Alberta; and 

(ii) One member must import 

softwood lumber from the Canadian 

East Region, which consists of the 

Canadian territories and all other 

Canadian provinces not listed in 

paragraph (b)(2)(i) of this section that 

import softwood lumber into the United 

States. 

(3) Public Member. One member and 

one alternate of the Board shall 

represent the public. The public 

member and alternate may not be 

manufacturers for the U.S. market as 

defined in § 1217.14. 

* * * * * 

■ 4. Amend § 1217.41 by: 

■ a. Revising paragraphs (b) and (c); 

■ b. Redesignating paragraphs (e) 

through (g) as paragraphs (f) through (h), 

respectively; 

■ c. Adding new paragraph (e); and 

■ d. Revising redesignated paragraph 

(g). 

The revisions and addition read as 

follows: 

§ 1217.41 Nominations and appointments. 

* * * * * 

(b) Domestic manufacturers, importer, 

and public member nominees, for both 

member and alternate positions, may 

provide the Board a short background 

statement outlining their qualifications 

to serve on the Board; 

(c) Domestic manufacturer, importer, 

public member and all alternate 

nominees may seek nomination to the 

Board for all open or vacant seats for 

which the nominees are eligible; 

* * * * * 

(e) Nominations for the public 

member shall be made by the Board. 

The Board shall submit the names of at 

least two nominees for the public 

member seat and at least two nominees 

for the public member alternate seat to 

the Secretary. 

* * * * * 

(g) No two members or alternates shall 

be employed by a single corporation, 

company, partnership, or any other legal 

entity. This includes subsidiaries and 

affiliates thereof; and 

* * * * * 

■ 5. Revise § 1217.42 to read as follows: 

§ 1217.42 Term of office. 

(a) Board members and alternates will 

serve a three-year term or until the 

Secretary selects his or her successor. 

Each term of office shall begin on 

January 1 and end on December 31. No 

member or alternate may serve more 

than two consecutive terms, excluding 

any term of office less than three years. 

A Board member may serve as an 

alternate during the years he or she is 

ineligible to serve in a member position. 

(b) For the initial Board alternates, 

their terms shall be staggered for two, 

three, and four years. Determination of 

which alternates shall serve a term of 

two, three, or four years shall be 

recommended to the Secretary by the 

Board. 

■ 6. Revise § 1217.43 to read as follows: 

§ 1217.43 Removal and vacancies. 

(a) In the event that any member or 

alternate of the Board ceases to work for 

or be affiliated with the domestic 

manufacturer or importer, or ceases to 

do business in the group or region from 

which the member or alternate was 

appointed to the Board, such position 

shall automatically become vacant. 

(b) The Board may recommend to the 

Secretary that a member or alternate be 

removed from office if the member or 

alternate consistently refuses to perform 

his or her duties or engages in dishonest 

acts or willful misconduct. The 

Secretary may remove the member or 

alternate if he or she finds that the 

Board’s recommendation shows 

adequate cause. Further, without 

recommendation of the Board, a 

member or alternate may be removed by 

the Secretary upon showing of adequate 

cause, including the failure by a 

member or alternate to submit reports or 

remit assessments required under this 

part, if the Secretary determines that 

such member’s or alternate’s continued 

service would be detrimental to the 

achievement of the purposes of the Act. 

(c) If a member position becomes 

vacant, the alternate member shall 

automatically assume the member 

position. The alternate shall serve until 

the end of the member’s normal term. If 

there is no alternate member to assume 

the position of member, the successor 

member and alternate shall be 

nominated and selected following the 

process set forth in § 1217.41. A vacancy 

will not be required to be filled if the 

unexpired term is less than 6 months. 

§§ 1217.44 through 1217.47 [Redesignated 

as §§ 1217.45 through 1217.48] 

■ 7. Redesignate paragraphs §§ 1217.44 

through 1217.47 as §§ 1217.45 through 

1217.48, respectively. 

■ 8. Add new § 1217.44 to read as 

follows: 

§ 1217.44 Alternates. 

An alternate member of the Board, 

during the absence of a member from 

the same group (domestic manufacturer, 

importer, or public member) and region 


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12992 Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Proposed Rules 

(as applicable) may serve in the place 

and stead of such member and perform 

such duties as assigned. In the event of 

the death, removal, resignation, or 

disqualification of any member, the 

alternate for that group and region shall 

automatically assume the position of 

said member. In the event that both a 

member of the Board and the alternate 

are unable to attend a meeting, the 

Board may not designate any other 

alternate from a different group or 

region to serve in such member’s or 

alternate’s place and stead for the 

meeting. 

■ 9. Revise redesignated § 1217.45 to 

read as follows: 

§ 1217.45 Procedure. 

(a) A majority of Board members 

(exclusive of vacant seats) will 

constitute a quorum so long as at least 

two of the members present are importer 

members and five of the members 

present are domestic manufacturers. An 

alternate will be counted for the 

purpose of determining a quorum only 

if a member from his or her group and 

region is absent or disqualified from 

participating. If participation by 

telephone or other means is permitted, 

members participating by such means 

shall count as present in determining 

quorum or other voting requirements set 

forth in this section. 

(b) All votes at meetings of the Board, 

executive committee, and other 

committees will be cast in person or by 

electronic voting or other means as the 

Board and Secretary deem appropriate 

to allow members participating by 

telephone or other electronic means to 

cast votes. Voting by proxy will not be 

allowed. 

(c) Each member of the Board will be 

entitled to one vote on any matter put 

to the Board and the motion will carry 

if supported by a majority of Board 

members (exclusive of vacant seats), 

except for recommendations to change 

the assessment rate or to adopt a budget, 

both of which require affirmation by at 

least a majority of Board members plus 

two (exclusive of vacant seats). 

(d) The Board must give its members, 

alternates, and the Secretary timely 

notice of all Board, executive 

committee, and other committee 

meetings. 

(e) In lieu of voting at a properly 

convened meeting, and when, in the 

opinion of the Board’s chairperson, such 

action is considered necessary, the 

Board may take action by mail, 

telephone, electronic mail, facsimile, or 

any other means of communication. 

Any action taken under this procedure 

is valid only if: 

(1) All members, alternates, and the 

Secretary are notified. 

(2) Members and alternates acting in 

a member’s stead are provided the 

opportunity to vote. A majority of Board 

members or alternates acting in the 

member’s stead (exclusive of vacant 

seats) vote in favor of the action (unless 

a vote of a majority of Board members 

plus two (exclusive of vacant seats) is 

required under the Order); and 

(3) All votes are promptly confirmed 

in writing and recorded in the Board 

minutes. 

■ 10. Revise redesignated § 1217.46 to 

read as follows: 

§ 1217.46 Reimbursement and attendance. 

Board members and alternates will 

serve without compensation, but will be 

reimbursed for reasonable travel 

expenses, as approved by the Board, 

which they incur when performing 

Board business. 

■ 11. Revise redesignated § 1217.47 to 

read as follows: 

§ 1217.47 Powers and duties. 

The Board shall have the following 

powers and duties: 

(a) To administer this Order in 

accordance with its terms and 

conditions and to collect assessments; 

(b) To develop and recommend to the 

Secretary for approval such bylaws as 

may be necessary for the functioning of 

the Board and such rules, regulations as 

may be necessary to administer the 

Order, including activities authorized to 

be carried out under the Order; 

(c) To meet, organize, and select from 

among its members a chairperson and, 

such other officers as may be necessary; 

(d) To create an executive committee 

of five members of the Board comprised 

of the chairperson and four other 

members elected by the Board. The 

duties of the executive committee shall 

be specified in bylaws that are 

recommended by the Board and 

approved by the Secretary; 

(e) To create other committees or 

subcommittees, which may include 

individuals other than Board members, 

as the Board deems necessary from its 

membership and other representatives it 

deems appropriate; 

(f) To employ or contract with such 

persons, other than the members or 

alternates, as it may deem necessary to 

assist the Board in carrying out its 

duties, and to determine the 

compensation and define the duties of 

each; 

(g) To notify manufacturers for the 

U.S. market of all Board meetings 

through press releases or other means 

and to give the Secretary the same 

notice of Board meetings, executive 

committee, and subcommittee meetings 

that is given to members and alternates 

in order that the Secretary’s 

representative(s) may attend such 

meetings, and to keep and report 

minutes of each meeting to the 

Secretary; 

(h) To develop and administer 

programs, plans, and projects and enter 

into contracts or agreements, which 

must be approved by the Secretary 

before becoming effective, for 

promotion, research, and information, 

including consumer and industry 

information, research and advertising 

designed to strengthen the softwood 

lumber industry’s position in the 

marketplace and to maintain, develop, 

and expand markets for softwood 

lumber. The payment of costs for such 

activities shall be with funds collected 

pursuant to the Order, including funds 

collected pursuant to§ 1217.50(f). Each 

contract or agreement shall provide that: 

(1) The contractor or agreeing party 

shall develop and submit to the Board 

a program, plan, or project together with 

a budget that specifies the cost to be 

incurred to carry out the activity; 

(2) The contractor or agreeing party 

shall keep accurate records of all of its 

transactions and make periodic reports 

to the Board of activities conducted, 

submit accounting for funds received 

and expended, and make such other 

reports as the Secretary or Board may 

require; 

(3) The Secretary may audit the 

records of the contracting or agreeing 

party periodically; and 

(4) Any subcontractor who enters into 

a contract with a Board contractor and 

who receives or otherwise uses funds 

allocated by the Board shall be subject 

to the same provisions as the contractor. 

(i) To prepare and submit to the 

Secretary for approval 60 calendar days 

in advance of the beginning of a fiscal 

period, rates of assessment and a budget 

of the anticipated expenses to be 

incurred in the administration of the 

Order, including the probable cost of 

each promotion, research, and 

information activity proposed to be 

developed or carried out by the Board; 

(j) To borrow funds necessary for 

startup expenses of the Order; 

(k) To invest assessments collected 

and other funds received pursuant to 

the Order and use earnings from 

invested assessments to pay for 

activities carried out pursuant to the 

Order; 

(l) To recommend changes to the 

assessment rates as provided in this 

part; 

(m) To cause its books to be audited 

by a certified public accountant at the 

end of each fiscal period and at such 


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Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Proposed Rules 12993 

other times as the Secretary may 

request, and to submit a report of each 

audit directly to the Secretary; 

(n) To periodically prepare and make 

public and to make available to 

manufacturers for the U.S. market 

reports of its activities and, at least once 

each fiscal period, to make public an 

accounting of funds received and 

expended; 

(o) To maintain minutes, books, and 

records and prepare and submit to the 

Secretary such reports from time to time 

as may be required for appropriate 

accounting with respect to the receipt 

and disbursement of funds entrusted to 

it, and to submit to the Secretary such 

information pertaining to this part or 

subpart as he or she may request; 

(p) To act as an intermediary between 

the Secretary and any manufacturer for 

the U.S. market; 

(q) To receive, investigate and report 

to the Secretary complaints of violations 

of the Order; and 

(r) To develop and recommend such 

rules and regulations to the Secretary for 

approval as may be necessary for the 

development and execution of plans or 

activities to effectuate the purposes of 

the Act. 

■ 12. Revise redesignated § 1217.48 to 

read as follows: 

§ 1217.48 Prohibited activities. 

The Board may not engage in, and 

shall prohibit the employees and agents 

of the Board from engaging in: 

(a) Any action that would be a conflict 

of interest; 

(b) Using funds collected by the Board 

under the Order to undertake any action 

for the purpose of influencing 

legislation or governmental action or 

policy, by local, state, national, and 

foreign governments or subdivision 

thereof, other than recommending to the 

Secretary amendments to the Order; and 

(c) No program, plan or project 

including advertising shall be false or 

misleading or disparaging to another 

agricultural commodity. Softwood 

lumber of all geographic origins shall be 

treated equally. 

■ 13. In § 1217.52, revise paragraph (h) 

to read as follows: 

§ 1217.52 Assessments. 

* * * * * 

(h) The HTSUS categories and 

assessment rates on imported softwood 

lumber are listed in the following table. 

The assessment rates are computed 

using the following conversion factors: 

One cubic meter (m3) equals 

0.423776001 thousand board feet, and 

one square meter (m2) equals 

0.010763104 thousand board feet. 

Accordingly, the assessment rate per 

cubic meter and square meter is as 

follows. 

TABLE 1 TO PARAGRAPH (h) 

Softwood lumber 

(by HTSUS No.) 

Assessment 

$/cubic 

meter 

Assessment 

$/square 

meter 

4407.11.00 ........ 0.1737 0.004412 

4407.12.00 ........ 0.1737 0.004412 

4407.13.00 ........ 0.1737 0.004412 

4407.14.00 ........ 0.1737 0.004412 

4407.19.00 ........ 0.1737 0.004412 

4409.10.05 ........ 0.1737 0.004412 

4409.10.10 ........ 0.1737 0.004412 

4409.10.20 ........ 0.1737 0.004412 

4409.10.90 ........ 0.1737 0.004412 

4418.99.10 ........ 0.1737 0.004412 

* * * * * 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–03372 Filed 2–20–24; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2024–0233; Project 

Identifier MCAI–2023–01003–T] 

RIN 2120–AA64 

Airworthiness Directives; Airbus SAS 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for 

certain Airbus SAS Model A330–800 

and A330–900 series airplanes. This 

proposed AD was prompted by a report 

of a protective cap found still in place 

on the drain hole of a fire extinguishing 

pipe, and by further investigations 

indicating these caps may have 

remained on other airplanes. This 

proposed AD would require a one-time 

general visual inspection (GVI) of the 

engine fire extinguishing pipe drain 

hole and, depending on findings, 

removal of the protective cap, as 

specified in a European Union Aviation 

Safety Agency (EASA) AD, which is 

proposed for incorporation by reference 

(IBR). The FAA is proposing this AD to 

address the unsafe condition on these 

products. 

DATES: The FAA must receive comments 

on this proposed AD by April 8, 2024. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

regulations.gov. Follow the instructions 

for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

AD Docket: You may examine the AD 

docket at regulations.gov under Docket 

No. FAA–2024–0233; or in person at 

Docket Operations between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this NPRM, the mandatory 

continuing airworthiness information 

(MCAI), any comments received, and 

other information. The street address for 

Docket Operations is listed above. 

Material Incorporated by Reference: 

• For EASA material that is proposed 

for IBR in this AD, contact EASA, 

Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; telephone +49 221 

8999 000; email ADs@easa.europa.eu; 

website easa.europa.eu. You may find 

this material on the EASA website at 

ad.easa.europa.eu. It is also available at 

regulations.gov under Docket No. FAA– 

2024–0233. 

• You may view this material at the 

FAA, Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

FOR FURTHER INFORMATION CONTACT: 

Vladimir Ulyanov, Aviation Safety 

Engineer, FAA, 1600 Stewart Avenue, 

Suite 410, Westbury, NY 11590; 

telephone 206–231–3229; email 

Vladimir.Ulyanov@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

The FAA invites you to send any 

written relevant data, views, or 

arguments about this proposal. Send 

your comments to an address listed 

under ADDRESSES. Include ‘‘Docket No. 

FAA–2024–0233; Project Identifier 

MCAI–2023–01003–T’’ at the beginning 

of your comments. The most helpful 

comments reference a specific portion of 

the proposal, explain the reason for any 

recommended change, and include 

supporting data. The FAA will consider 

all comments received by the closing 

date and may amend this proposal 

because of those comments. 


khammond on DSKJM1Z7X2PROD with PROPOSALS